Are our postage rates lower as result of fancy stamps and other articles sold by USPS?

Question

I wonder if the USPS involvement in sale of sports memorabalia, cute neckties, and all the varieties of pictures on postage stamps has helped raise funds to keep our postage lower, or has this accomplished the opposite????

Answer 1

The post office is exists to provide union scale wages for a job that requires limited ability.   The rates are regularly raised to accommodate the salary increases for the postal workers.   The only reason rates do not go higher is is there is FDX and UPS to price compete.  No other service can provide first class mail service.  A contract was proposed about 30 years in Houston, TX but blocked by the postal workers union intervening.  Oh, there are some cost savings from the USPS being "allowed" to computerize some of its functions.  The speciality stamps:  it exists to justify more postal employees.  It is a service a private company could provide more efficently.  I always buy my stamps at WalMart because I do not like to beg the postal worker to come to the counter and make a computation on the total price of 10 stamps at 42 cents each!   Fancy stamps are not a winner for the customer or I think the most recent stamp hike would not have been required.  

Answer 2

The revenue raised by selling collectibles far outstrips the costs of marketing.  That revenue helps hold down the frequency of rate increases.   Keep in mind that the high cost of fuel hurts the USPS along with everyone else, and that while UPS, FedEx and other shippers tack on fuel surcharges, the Post Office doesn't.